This post provides a direct overview of the legal framework governing the misuse of corporate assets in El Salvador (SV) as of 2025. This includes a summary of the core criminal liabilities, key statutes, and compliance essentials for business owners and international professionals interested in Salvadoran business law.
Legal Framework for Misuse of Corporate Assets in El Salvador
El Salvador enforces clear policies regarding the misuse of corporate assets, with both the Código Penal (Penal Code) and the Código de Comercio (Commercial Code) establishing criminal liability for such offenses. The most relevant statutes are Article 220 of the Penal Code, “Administración fraudulenta” (fraudulent administration), and Article 18 of the Commercial Code, both of which explicitly address actions where corporate assets are misused, misappropriated, or diverted from their intended economic purpose.
Key Statutes Governing Misuse of Assets
| Primary Reference | Description |
|---|---|
| Código Penal de El Salvador, Artículo 220 | Establishes criminal liability for fraudulent administration—covers acts where individuals managing corporate assets commit fraud or act against the company’s interests. |
| Código de Comercio de El Salvador, Artículo 18 | Sets out general duties for corporate representatives and defines prohibited acts regarding the management and disposition of company assets. |
Criminal Liability in 2025
According to Salvadoran law, criminal liability for the misuse of corporate assets is unequivocally established. In 2025, any manager, executive, or legal representative who misappropriates, misuses, or otherwise leverages company assets for personal benefit or contrary to the interest of the company may face criminal prosecution. Enforcement is grounded directly in national legislation, which provides a legal basis for both investigation and prosecution of such conduct.
| Offense | Criminal Liability Enforced? | Legal References |
|---|---|---|
| Misuse of Corporate Assets | Yes | Penal Code Art. 220; Commercial Code Art. 18 |
Practical Implications for Businesses
Compliance with the rules on the use of corporate assets is a key risk management issue for local and international business operators in El Salvador. The statutes not only criminalize outright theft or embezzlement but also penalize any behavior that may harm the company’s financial interests through negligent or dishonest administration. Senior officers and board members are particularly exposed and should ensure transparent and documented asset management practices at all times.
Enforcement and Legal Process
When suspicions of misuse arise, Salvadoran authorities rely on the articulated codes to investigate and, if warranted, initiate proceedings. Conviction under Article 220 of the Penal Code or Article 18 of the Commercial Code can lead to significant legal consequences. While specific penalty ranges are determined by judicial interpretation and not provided in the source data, the clear criminal framework should prompt careful legal review and robust internal controls among corporate actors.
Pro Tips: Ensuring Compliance with Salvadoran Corporate Asset Rules
- Document All Transactions: Maintain clear and accessible records for all asset-related transactions and decisions, especially those involving related parties or unusual expenditures.
- Separate Personal and Corporate Finances: Strictly segregate personal finances from company resources to avoid inadvertent commingling or perception of impropriety.
- Train Key Personnel: Regularly train managers and decision-makers on the latest legal provisions and compliance expectations under Salvadoran law.
- Internal Controls Matter: Establish diligent oversight mechanisms for any transaction involving significant assets or management signature authority.
- When in Doubt, Review with Counsel: For any ambiguous asset-related decision, consult specialized legal advisors familiar with Salvadoran business law.
Official Reference
For the most current legislation and official government resources, visit the Asamblea Legislativa de El Salvador homepage.
Overall, El Salvador maintains a clear criminal liability regime for misuse of corporate assets in 2025. The relevant provisions, specifically found in Article 220 of the Penal Code and Article 18 of the Commercial Code, emphasize the importance of transparent, honest administrative practices. Company leaders and legal representatives must keep compliance efforts up-to-date and well-documented, as the risk of criminal exposure is real and enforceable under Salvadoran law.